Credit Suisse is making good on that promise it made at the latest G-20 summit, altering the way it will pay 7,000 senior bankers, pushing salaries north while deferring a significant amount of bonus compensation and moving some of that bonus compensation from cash into stock. The announcement is a big score for European governments and underscores the drastic changes that European banks are making to their compensation policies.
But here in the U.S., it looks like it could be business as usual next year, as Wall Street bonuses are expected to jump 40 percent this year (after falling about 44 percent last year).
And what's a big bucks discussion without the Oracle of Omaha's two cents? Indeed, it's a non-issue, which is why Warren has chimed in on the topic, saying, in so many words (in an interview with the CEO of Business Wire), that when the shyte hits the fan and shareholders lose their shirts, someone in charge needs to be banking a lot fewer Dead Presidents than they did when people shareholders were killing it.
To be fair, we should probably let the Oracle speak for himself. What he actually said in the interview about what needs to be done to the pay structure at the nation's top banks is this: "What you have to change in Wall Street is you have to make sure that in addition to carrots, there are sticks."
Right on, Warren. Sticks. We absolutely, positively need to make sure that there are tons and tons of those suckers. Or else.
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